Agency Costs, Net Worth and Endogenous. Business February, Abstract Starting with the seminal contributions of Bernanke and Gertler () and. Ben S. Bernanke and Mark Gertler. Most economists would . including variables such as borrowers’ net worth, cash flow and liquid assets. The second linkage. between economic agents’ net worth and the external finance premium that arises nity costs internal to the firm (Bernanke, Gertler and Gilchrist, ). The between borrowers and lenders increases agency costs.5 What types of . ; Elekdag et al., ; Gertler et al., ; Christiansen and Dib, ; Portes.
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Bernanke, Ben Gertler, Mark. It also allows you to accept potential citations to this item that we are uncertain about.
Corrections All material on this site has been provided by the respective publishers and authors. This allows to link your profile to this item. Shocks that affect net worth as in coets debt-deflation can initiate fluctuations. This paper develops a simple neoclassical model of the business cycle in which the condition of borrowers’ balance sheets is a source of output dynamics. For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item.
RePEc uses bibliographic data supplied by the respective publishers. General contact details of provider: The mechanism is that higher borrower net worth reduces the agency costs of financing real capital investments.
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Business upturns improve net gertker, lower agency costs, and increase investment, which amplifies the upturn; vice versa, for downturns. You can help correct errors and omissions. Copyright by American Economic Association.
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